Singapore Kicking Out Unlicensed Firms is Part of Global Trend

Singapore’s newest order for unlicensed crypto corporations to cease serving abroad clients marks the start of the tip for regulatory loopholes within the blockchain business.

The May 30 directive from the Monetary Authority of Singapore (MAS) tells crypto corporations and people providing companies overseas to get licensed or get out.

To some within the business, it could appear to be Singapore is instantly turning away from its crypto-friendly stance. But in actuality, the city-state has remained constant in its push for compliance. The transfer aligns with a worldwide crackdown geared toward cash laundering and terrorism financing.

“For exchanges still playing regulatory pinball — constantly seeking loopholes to avoid licensing requirements — the reality is clear: They will soon find themselves having to relocate to their favorite destination, the moon,” Joshua Chu, a Hong Kong-based lawyer and co-chair of the town’s Web3 affiliation, instructed Cointelegraph.

“With jurisdictions like Singapore, Thailand, Dubai, Hong Kong and others tightening oversight and closing gaps, there’s simply no escaping the global push for compliance.”

Exiled in Singapore, crypto nomads run out of highway

Singapore has been a good hub for regulatory arbitrage in crypto, due to its Payment Services Act (PSA), which requires licensing for corporations serving native shoppers. 

With a comparatively small home inhabitants of round 6 million, many crypto corporations opted to sidestep licensing by merely avoiding Singaporean clients and specializing in abroad markets as a substitute, famous YK Pek, CEO and co-founder of the authorized tech agency GVRN, on X.

While some interpret the latest MAS transfer to oust unlicensed crypto corporations below the 2022 Financial Services and Markets Act (FSMA) on a good deadline as a pointy coverage reversal, the regulator mentioned it has maintained a gentle stance.

“MAS’ position on this has been consistently communicated for a few years since the first response to public consultation issued on 14 February 2022 and in subsequent publications on 4 October 2024 and 30 May 2025,” the central financial institution mentioned in a June 6 assertion.

The FSMA states that any enterprise in Singapore providing digital token companies to shoppers abroad have to be licensed. The legislation has not been modified. Rather, the MAS has accomplished public consultations and is notifying service suppliers that their unlicensed tenure is over.

Related: South Korea’s new president will bolster crypto, however scandals prevail

“I think we need to recognize that Singapore is first and foremost a global financial center, not necessarily a crypto one,” Patrick Tan, normal counsel at ChainArgos, which was among the many respondents to the MAS session, instructed Cointelegraph. 

“Given stricter crypto-asset licensing conditions globally, organizations will need to reflect on what they are seeking to obtain from a license,” he added.

Hong Kong presents no ensures for Singapore’s crypto outcasts

As corporations weigh their subsequent transfer, hypothesis is rising over what jurisdictions would possibly develop into extra enticing. Recent developments recommend Singapore is not an outlier however half of a worldwide regulatory shift.

The Philippines, as an example, now requires all licensed crypto corporations to take care of a bodily workplace within the nation. Thailand has not too long ago expelled a minimum of 5 exchanges over licensing and cash laundering considerations, giving traders till June 28 to maneuver their property.

One vacation spot that has emerged as an choice is Hong Kong, Singapore’s regional rival. The two jurisdictions are incessantly in contrast within the so-called crypto hub race.

Related: Who’s received the allure, money and code to be a crypto hub?

Hong Kong is additionally being thought-about by Bybit, one of the exchanges not too long ago expelled from Thailand. A job posting by Bybit looking for a licensing counsel in Hong Kong appeared simply days after Thailand’s Securities and Exchange Commission introduced the corporate will likely be blocked. 

A Bybit spokesperson confirmed to Cointelegraph that Hong Kong is one of the jurisdictions into account for future licenses, including that the corporate is “working with regulators in different countries.” The alternate is additionally hiring for the same position in Malaysia.

The business is studying that being a “crypto hub” usually means dealing with tighter but clearer regulatory frameworks. Neither Hong Kong nor Singapore has taken a laissez-faire strategy. In truth, Hong Kong moved earlier, ordering all unlicensed exchanges to exit the market in mid-2024.

Firms trying to pivot to Hong Kong might discover that fewer corporations have succeeded in securing licenses there. As of June 6, the town had issued solely 10 crypto licenses, in comparison with 33 digital fee token licenses accepted by MAS below the PSA.

“Looking ahead, we anticipate regulatory actions imminently from other major crypto centers including Hong Kong, the European Union with its MiCA [Markets in Crypto-Assets] framework, the United Kingdom’s evolving crypto laws, South Korea, and Japan — all committed [Financial Action Task Force] members with mature or maturing regulatory regimes,” mentioned Chu.

Singapore is amongst 40 FATF members

Singapore’s FSMA expanded regulatory oversight of crypto service suppliers, notably these serving abroad shoppers. The act enhances the PSA and was launched partly to align with the Financial Action Task Force’s (FATF) mandates on the Travel Rule and Anti-Money Laundering (AML) requirements.

The tempo of regulatory alignment accelerated after the FATF’s February plenary session, which launched public consultations on enhancing fee transparency and addressing the advanced trails used for cash laundering and sanctions evasion.

“Dubai’s [Virtual Assets Regulatory Authority] released its Rulebook 2.0 shortly after the plenary, imposing stricter AML protocols with a June [19] compliance deadline, reflecting its cautious approach following gray list removal,” Chu identified.

For FATF members like Singapore and Hong Kong, tightening AML requirements is anticipated. But for non-members that fall quick of compliance, inclusion on the FATF grey listing could be economically devastating. For instance, a report by suppose tank Tabadlab estimated that Pakistan’s placement on the FATF grey listing between 2008 and 2019 led to cumulative actual gross home product losses of round $38 billion.

FATF President Elisa de Anda Madrazo of Mexico has made strengthening requirements for digital property one of the priorities of her two-year time period. Source: FATF/YouTube

Aside from not too long ago tightening their crypto laws, one other frequent denominator amongst Thailand, the Philippines and the United Arab Emirates is their removing from the FATF grey listing. Thailand was delisted in 2013, the UAE in 2024 and the Philippines in 2025. According to Chu, jurisdictions that exit the grey listing usually work “extra hard” to remain off it.

Dubai, the UAE’s rising monetary middle, has been a magnet for crypto companies because of its pleasant guidelines and devoted regulator, however authorized specialists warn towards misunderstanding the ecosystem.

“Dubai just got off [the gray list] not too long ago and is on the probation list,” Chu mentioned. “So, characters who think they are safe in Dubai might be in a bit of a false sense of security.”

This implies that the period of hopping jurisdictions to dodge regulation is coming to a detailed. As crypto corporations seek for their subsequent base, the listing of pleasant however lenient locations is shrinking, and even essentially the most welcoming hubs are demanding compliance.

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